Blockchain technology, artificial intelligence and high-frequency commodity trading have been combined in a single platform for the first time with the testing of a new cost-cutting energy platform.

Distro

Distro helps companies operating at the Port of Rotterdam to reduce energy costs. Photo: Rotterdam Port Authority

In recent months, 32 companies at the RDM site in the Port of Rotterdam have been testing energy platform ‘Distro’. Working with a roof full of solar panels and a battery to store the energy produced, users trade energy they have produced themselves in a micro market. The trial shows that it is possible to coordinate supply and demand in local markets 48 hours in advance through a platform based on fair prices and transparent trading agreements. The software used will now be prepared for commercial use.

Nico van Dooren, director of new business & portfolio management at the Port of Rotterdam Authority, said: “This pilot project is good for everyone: not only are energy prices fairer and more transparent, the costs of sustainable energy are reduced for clients. This is a solution that will help to achieve the goal of a carbon-neutral port.”

Reducing energy costs

The Distro platform was developed by S&P Global Platts, a division of S&P Global, and Blocklab, a subsidiary of the Port of Rotterdam Authority that specialises in blockchain solutions. The new initiative helps companies in the port to reduce energy costs by making better use of locally produced electricity and by smoothing peaks in demand on the electricity grid, said the port authority.

Artificial Intelligence predicts the consumption and production patterns of individual electricity consumers, and trades kilowatt hours on the platform based on those forecasts. The price of electricity fluctuates with changes in supply and demand. Batteries responding to price buy and store excess on-site solar energy that is generated when consumption levels are low, to re-sell it to users when solar generation is low.

The platform combines the capabilities of high frequency trading, with a blockchain environment that provides security for transactions, identity management and market rule compliance.